USA Graphite Inc. to Acquire the Blue Wing Mountain Graphite Property
November 26 2012 - 4:03PM
Marketwired
USA GRAPHITE INC. (OTCQB: USGT) or ("the
Company") is pleased to announce it has acquired a 100% stake in
the Blue Wing Mountain Graphite property, a strategic Project
located in Pershing County, Nevada. The property consists of 96
lode claims covering an area of approximately 1985 acres. Road
access to the project is excellent and is situated directly between
I-80 East and US-395 North.
The financial terms of the transaction consist of approximately
$3,000,000 in cash and stock and a $1,000,000 work program
commitment. As well, to pay a production Net Smelter Royalty (the
"NSR") to NV Minerals equal to two percent (2%) of the net smelter
returns, per the terms and conditions of the Option Agreement. The
Company shall have a one-time right to purchase fifty percent (50%)
of the NSR in the Property for five hundred thousand dollars
($500,000).
Initial prospecting and geological analysis on the claims
confirmed the presence of flake graphite at surface. The dominant
rock type on the property is hornfels, which are dark grey to black
in color with pockets of flaked graphite throughout the known
outcrops. Extensive sections of the Blue Wing Mountains Graphite
Project contain abundant chiastolite (andalusite) crystals in a
matrix of graphite-rich, pelitic pyroxene-hornfels.
Two different hornfels units have been mapped based on the
amount of the chiastolite content. These two units comprise 90% of
the Blue Wing Mountains and both units are rich in high carbon
content flake graphite. The chiastolite at the Blue Wing Mountains
Graphite Project occurs in a black, graphite-rich politic
pyroxene-hornfels. The presence of carbon in the chiastolite and
the high graphite content of the hornfels suggest that the Blue
Wing Mountains were formed by a granite intrusion into an oil-rich
shale.
Pershing County is well known for its mineralogical potential
with mines such as the Florida Canyon Mine, Colado Mine and Empire
mine, all located within the region.
Mr. Wayne Y. Yamamoto, President and CEO
of USA Graphite, said, "We are pleased with our initial acquisition
in the graphite space. Our geological efforts to date are very
encouraging and confirm the presence of flake graphite on our
property. The size of the property and the quality of graphite on
the property lead us to believe that the Blue Wing Graphite
property could host a multi-million ton graphite mine."
About Graphite:
- Graphite is used in refractories -- used to line
high-temperature equipment; pencils; lithium-ion batteries -- used
in consumer electronics and electric vehicles, including the Nissan
Leaf, Tesla Model S and others; fuel cells; and Pebble Bed nuclear
reactors. It is used in foundries, lubricants and brake
linings.
- Graphite is also used to produce graphene, a tightly packed
single layer of carbon atoms that can be used to make inexpensive
solar panels, powerful transistors, and even a wafer-thin tablet
that could be the next-generation iPad* or iPod*.
- Graphene, extremely light and strong, has been called the
world's next wonder material.
- The closure of graphite mines in China, which produces 75% of
the world's graphite, has resulted in a fall in global graphite
production to 1.3 million tonnes per annum in 2011. Like rare
earths, China is restricting the export of graphite to protect its
own domestic industries. The second largest producer is India,
followed by Brazil, North Korea, Austria and Canada.
*trademarks of Apple Inc.
About USA Graphite: USA Graphite is a
publicly traded US exploration company focused on the acquisition,
exploration and development of world-class graphite properties in
North America. USA Graphite intends to become a domestic (US)
graphite supplier. The USGS has reported that the USA has been a
100% net importer of graphite over the last 5 years, sending
billions of dollars out of America. USA Graphite has holdings in
Nevada, offering considerable potential for the discovery and
development of large flake, high-grade graphite, whereby
mineralization is exposed at surface and clearly evident at
economic depths. For additional information please visit
http://www.usa-graphite.com
"Safe Harbor" Statement: Under The Private
Securities Litigation Reform Act of 1995: The statements in the
press release that relate to the Company's expectations with regard
to the future impact on the Company's results from new products in
development are forward-looking statements, within the meaning of
the Private Securities Litigation Reform Act of 1995. Notice
Regarding Forward-Looking Statements - This press release includes
forward-looking statements that involve a number of risks and
uncertainties, including the success of the programs it is
commercializing and developing. Further, the risks involve the
ability of the Company to raise capital to fund its operations and
the capital requirements for the development and marketing of its
products. Investors are encouraged to review the risk factors
listed or described from time to time in the Company's filings
(10K, 10Q's, S-1 and others) with the Securities and Exchange
Commission.
Contact: USA Graphite Inc. info@usa-graphite.com